Dollar Trades Sideways Near Pre-War Levels

2026-04-22 08:05 By Joana Taborda 1 min. read

The dollar index edged lower to just below 98.3 on Wednesday, trading largely sideways near pre-war levels, as uncertainty in the Middle East persists despite some near-term relief from a ceasefire extension.

US President Trump announced he would extend the ceasefire with Iran indefinitely, just ahead of its expiration, to allow time for peace negotiations.

He also indicated that no new attacks were planned, although the blockade of the Strait of Hormuz would remain in place.

However, uncertainty persists over the timing of any formal negotiations and news showed Iran fired ships in the Strait of Hormuz.

Meanwhile, Federal Reserve nominee Kevin Warsh pledged to maintain independence from the White House while advancing broad reforms, a stance viewed as more hawkish than markets had expected.

The Fed will decide on monetary policy next week and no changes in the fed funds rate are expected.



News Stream
Dollar Trades Sideways Near Pre-War Levels
The dollar index edged lower to just below 98.3 on Wednesday, trading largely sideways near pre-war levels, as uncertainty in the Middle East persists despite some near-term relief from a ceasefire extension. US President Trump announced he would extend the ceasefire with Iran indefinitely, just ahead of its expiration, to allow time for peace negotiations. He also indicated that no new attacks were planned, although the blockade of the Strait of Hormuz would remain in place. However, uncertainty persists over the timing of any formal negotiations and news showed Iran fired ships in the Strait of Hormuz. Meanwhile, Federal Reserve nominee Kevin Warsh pledged to maintain independence from the White House while advancing broad reforms, a stance viewed as more hawkish than markets had expected. The Fed will decide on monetary policy next week and no changes in the fed funds rate are expected.
2026-04-22
Dollar Firms Up as Peace Talks Collapse
The dollar index held above 98.3 on Wednesday after gaining in the previous session, as plans for a second round of US-Iran peace talks fell apart, boosting safe-haven demand for the currency. Reports indicated Vice President JD Vance canceled a scheduled trip to Islamabad for negotiations after Tehran informed the US via Pakistan that it would not attend the meeting. Iran also said it would not reopen the Strait of Hormuz while the US Navy continues intercepting vessels. Meanwhile, President Donald Trump extended the current ceasefire, stating he would postpone further strikes until Iran submits a new proposal and talks are completed. On the policy side, Federal Reserve nominee Kevin Warsh pledged to maintain independence from the White House while advancing broad reforms, a stance viewed as more hawkish than markets had expected.
2026-04-22
Dollar Moves Higher on Uncertainty About US-Iran Talks
The dollar index edged up to 98.3 on Tuesday, its highest level in about a week, as uncertainty in the Middle East prompted a modest flight to safety. It remains unclear whether Iran will join the US for a second round of negotiations ahead of Wednesday’s ceasefire deadline, while the Strait of Hormuz continues to be largely shut. Meanwhile, elevated oil prices continue to add to inflation concerns. Also, investors are closely watching the Senate confirmation hearing for Kevin Warsh as the next Fed Chair. Warsh argued that the Federal Reserve requires significant changes to avoid repeating past mistakes on inflation, calling for a regime shift in how policy is conducted, including a new inflation framework. In addition to using interest rates and the Fed’s balance sheet to combat inflation, Warsh also emphasized the need for clearer and more effective communication from the Fed.
2026-04-21